Study on Ramsey pricing based on telecommunication industry prosperity

The pricing is core question when every enterprise making decision. Especially telecom industry has lots of sunk cost, it is inapplicable to price as marginal cost, so Ramsey propose a formula to deal with the paradox. Ramsey pricing method always be thought highly of by researcher in the telecommunication industry for a long time, but it only keep budget balance for it stress the welfare of consumer too much and the pricing way make enterprise don´t care innovation and efficiency. With telecom industry competition turn tough and more and more telecom enterprise list on stock market, it is inevitable to induce a new way to price in change telecom market. The paper adds up to industry prosperity to adjust Ramsey pricing, and induces that the relation about price and marginal cost and average cost, explains some dilemmas of telecommunication industry nowadays.